A top Realtor in the Savannah area. Jeri Patrick has a team with an established history of success of selling homes in and around the Savannah Area. Jeri specializes in the home buying and selling process and is available to answer any of your real estate questions, provide information and handle any obstacles that may arise.
Jeri Patrick began her Real Estate careers in 2002. Jeri’s strong ambition to be a success created a driving force in today’s real estate market.

Wednesday, October 30, 2013

Federal regulators have begun implementation of the Biggert-Waters Flood Insurance Reform Act, and REALTORS from across the country are reporting significant rate increases that call into question the continued affordability of flood insurance. In addition to extending the National Flood Insurance Program for 5 years, the Act included several provisions phasing out subsidized insurance rates for about 20 percent of property owners and buyers.
NAR is working hard to keep flood insurance affordable, but they need your help. The best way to ensure NAR's credibility to Congress and FEMA is by having real life examples of how the recent changes to flood insurance are impacting homeowners across the country.
NAR has asked that you support their efforts in identifying the cause of the increase and most effective response by by filling out the attached flood insurance survey - where you are asked to provide specific examples from your community on the impact of recent changes to the NFIP. Filling out this survey is the most important step you can take at this time to help support the efforts of NAR by providing them with actual evidence to present to Congress and FEMA. Please provide supporting documentation with your survey, if possible.
Once you've completed your survey, please send it to April Brown, NAR Political Representative at ABrown@realtors.org, or you can reply here and I will forward on.
Also, for more information, here is a study about the percentage of properties by state and by county that are currently subsidized under NFIP. http://www.arcgis.com/home/webmap/viewer.html?webmap=e0208985e8e64d44bca999325254ff5b&extent=-106.6909,33.1708,-76.9399,43.9898
You can zoom in to see county level data, and click on each county for more information. Keep in mind that the shading is the number of policies in the aggregate, not the percentage, so states like CA & FL appear to have the most because of their higher populations.
Last, here is the link to the NAR flood insurance toolkit: http://www.realtor.org/topics/flood-insurance
This is your opportunity to help educate policy makers on the true impact to property owners and the marketplace. If you have an example to share, please fill out the attached survey today.

One of the things that property owners must be concerned with is eminent domain, which is defined as "the right of a government or its agent to expropriate private property for public use, with payment of compensation."

City, county, state and federal governments can claim eminent domain for any number of reasons. For example, if your property is impeding a road expansion, it may make the claim in order to make the land available for public use.

If you receive notification that a government entity is considering an eminent domain designation on your property, there are two things you should know:

1. They have to pay you fair market value for it.

2. Their offer will be on the low end of fair market value.

Eminent domain power can and has been abused. There can exist a conflict of interest when a developer lobbies a city government for a redevelopment project, only because it plans to construct new buildings for office, retail or housing in order to line their pockets.

The first thing you need to do when faced with eminent domain is hire an attorney who specializes in the area.

Agency with the interest in your property will hire an appraiser to inspect and appraise your property.

Agency makes an offer, usually a low one.

If you don't accept their offer, and are unable to negotiate a fair deal, they will schedule a public hearing. The agency has to prove their case that acquiring the property is necessary for the public good.

They will file a complaint against you in Superior Court, and you will be served a summons which requires a response.

They will deposit "probable compensation" and file a motion for prejudgment possession with the Court. At this time, you may object once again. If their motion is approved, they may take possession of your property within 30 days.

At this time, your attorney will obtain appraisal reports from appraisers and other experts to establish your property's fair market value. These reports are filed with the Court and presented to the agency who filed for eminent domain.

Mediation - the two parties come to an agreement, if one can be reached.

If you can't come to a compromise, they are forced to make a final offer.

If you still do not accept the offer, a trial will be held to determine fair market value of your property and hear any other issues.

Your rights as a property owner vary by your home state. You need to be informed of those rights and the process. For instance, depending on your home state, you may be able to recover attorney fees from the agency who filed the case. Do your homework. Most importantly, hire a successful attorney who specializes in eminent domain cases.

Sunday, October 20, 2013

Posted on October 17, 2013 by adminkwblog
Today, every real estate professional needs to build an online presence and brand to reach the greatest possible audience and build credibility. From a Website and blog to social media and email marketing, promoting yourself and building an online reputation are important business drivers.
And while there are many tools and platforms on which to build this online reputation, there are also many missteps that online real estate marketers make. Here are five of the most common mistakes that can damage your online brand.
1. Negativity. We all have bad days, but venting about them in public isn’t the best way to handle your emotions. Treat your social media platforms as you would a dinner party conversation – keep the tone upbeat and engaging. No one wants to sit next to the person who complains, but they flock to the person who’s interesting, informative and makes them laugh.
2. Updating Lapses. It can be tough to keep up with all of the online marketing expected today, but hosting a blog or social media profile or page that hasn’t been updated in months or even years makes a bad impression. Ignoring your own brand might raise questions about attention to detail. Instead of trying to keep up with many different social media, try focusing on one or two, such as a Twitter profile and a blog or a Facebook page and YouTube channel. Then, add more as you have the time. But keep all of them populated with fresh content. (Read about free social media automation tools here.)
3. Oversharing. It’s important to share some information about yourself and your interests. After all, there’s a reason it’s called “social” media. But some people go overboard and feel like they need to share every thought that comes into their heads. That’s generally a bad idea. Go ahead and cheer your honor student from time to time, but think twice before posting updates on every meal you ate during the day.
4. Ignoring Comments. If people respond to your email messages or post on your social media profiles, be sure to answer them. These platforms offer powerful opportunities to network and build connections with people, turning them into customers and referral sources. When someone takes the time to share a comment, idea or question, be sure to respond and continue the conversation. Ignoring such outreach is a lost opportunity.
5. Promotion Overload. One big turnoff in online branding is relentless self-promotion. If you’re only tweeting about new listings and sales or blogging about your awards and accomplishments, your audience is going to get bored. Talk about their interests, like what’s going on in their communities or in the real estate market in general. Add a bit of a personal touch, too. If you love to fish or go antiquing, discuss your latest catch or find. Your audience will be more responsive if they see there’s a real person behind that polished façade

Posted on October 18, 2013 by adminkwblog
Keller Williams Realty, Inc. announced today that it is launching an international rebranding campaign featuring a redesigned logo and brand identity.
“We knew that the day we officially celebrate our 30th anniversary was the right time to unveil a completely new look for our associates,” CEO Mark Willis said. “It’s an exciting, more relevant brand for a company that’s growing and changing the entire industry – a company that’s attracting the next generation of real estate professionals.”
“With this evolution of our brand, we’re really staying true to our brand philosophy,” said Ellen Curtis, executive director of marketing and communications for Keller Williams. ”We stand behind our agents, not in front of them – and our new identity reflects that. It’s purposefully simplified to complement our agents’ brands – not compete with them.
“We also believe that it’s a look that will resonate with tomorrow’s home buyers and sellers and reinforce our agents’ position as forward-thinking, sophisticated and savvy,” Curtis added.
Keller Williams President Mary Tennant said, “The original Keller Williams logo has certainly withstood the test of time, and we knew it was time to revitalize, revamp and rethink our brand position in the industry. We’re thrilled to celebrate our 30th birthday this way.”
The company will immediately begin rolling out the new branding across its platforms, products and tools, including its proprietary marketing system, eEdge, and its new mobile app, which powers more than 90,000 agent-branded real estate search apps – one for each of its agents.
“We’re introducing the world to the next evolution of Keller Williams,” Willis said. ”We have always been an industry thought leader, a maverick, and we want our entire identity to reflect that.”

Friday, October 18, 2013

The Homes.com Local Market Index and Rebound Reports to include data ending July 2013 are in, bringing with them some very good news! As what seems to be a continuing trend, more and more markets continue to overcome the price declines resulting from the Great Recession. In fact, 22 out of the Top 100 U.S. housing markets now show more than a 100% recovery from their position prior to the housing bubble burst. Furthermore, there are now 44 markets that have posted a recovery of more than 50%, increasing from a total of 41 markets in last month’s report. We are also excited to announce the latest data also indicates that each of the Top 100 U.S. markets posted increases both monthly and annually!
Although it’s good to hear that twenty-two percent of the markets have completely recovered, a number of these markets never witnessed the drastic increase in foreclosures and short sales that generally defines the housing economy from 2007-2013. Additionally, seven of the top 20 rebounded markets are benefiting from energy development from the use of oil, gas, shale, or coal. These markets were also among those that didn’t suffer from the full effects of the recession, as they had minor deviations from their normal state compared to other markets in the same region.
Highlights from the Homes.com Local Market Index and Rebound Reports:
Top Performing Markets- the most recent data indicates that strength was mainly concentrated in the Western Region, where six of the top 10 markets with the largest monthly increases were located. Once again confirming that everything is bigger in Texas, six of the top 10 rebounding markets can be found in the Lonestar State.
•Honolulu, HI has done it again, possessing the highest annual change of +29.17 index points
•California possessed eight of the Top 10 markets with the highest annual change of index points
•San Diego-Carlsbad-San Marcos, CA took the lead for highest monthly change with an increase of 4.96 index point change
•San Antonio-New Braunfels, TX reported the highest rebound of all markets that have recovered more than 100% with a peak index value of 148.57
Worst Performing Markets- While no markets witnessed any decreases in activity, there are a few that you may want to keep your eye on moving forward. The highly populated cities of California are currently on the top of the list for highest activity, but it may prove to be short lived. More and more Californians are becoming unable to afford median prices homes because of rapidly rising prices in the coastal communities of San Francisco, Los Angeles, and San Diego. In result, homeowners are being pushed inland to more affordable communities like Riverside and San Bernardino ¹. We expect to see gradual decreases in activity throughout these pricey coastal communities, but there’s a good chance that increases will occur in the inland communities that residents are moving to.
About the Homes.com Local Market Index
The Homes.com Local Market Index report tracks repeat sales of properties for both single family and multi-unit/condominium sales in separated indices for the top 100 Local Markets and midsized markets ranked from 101-300 as determined by the U.S Census Bureau Core Based Statistical Areas (CBSAs)
About the Homes.com Rebound Report
Homes.com Rebound Report reveals new market performance data on the price impacts of the Great Recession and U.S. Housing Bubble

Well, as you probably know by now the government put a Band-Aid on a sucking chest wound. We are back up and running and the Government shut-down is over for now, but the future is uncertain. Stock reacted positively to the news and opened higher. The bond market was helped today by weaker than expected earnings from IBM and Goldman Sachs and rates have improved.
So the result is that we are back on track and interest rates are drifting lower which is great. But it seems to me that we have not avoided a crisis, we have just pushed it a little farther down the road.
Our rates are below.
Rate Origination Discount APR
VA 30 Year Fixed 3.875% 1% 0% 4.17%
FHA 30 Year Fixed 3.875% .875% 0% 5.21%
USDA 30 Year Fixed 4.125% .652% 0% 4.34%
CONV 30 Year Fixed* 4.375% 1% 0% 4.65%
*Rates based on a sales price of $250,000,
loan amount of $200,000 and credit score of 720.
Quote of the Day: “When I eventually met Mr. Right I had no idea that his first name was Always." - Rita Rudner
Today in History: The battle of Saratoga ends with an American patriot victory over the British in the Revolutionary War - 1777
Rates are provided for informational purposes only. This is not a commitment or offer to extend credit. All rates quotes as 30 day locks for GA properties.
Rates are available to new loan applicants. Rates are subject to change without notice. All rates quoted are for purchase loans. Rates available as of 10/18/2013.

Description: cid:image001.png@01CECC01.FBC9E7F0
Good news for west Chatham County:
Eligible areas for USDA Rural Housing Programs: The “Continuing Appropriations Act, 2014” (H.R. 2775) was signed into law by the President of the United States. Therefore, barring further Congressional action, current eligible areas for USDA Rural Housing Programs will remain unchanged through January 15, 2014. (H.R. 2775 extends Sec. 731 of H.R. 933 “Consolidated and Further Continuing Appropriations Act, 2013”)
But when will we be able to get them closed?
Several USDA websites/applications were disabled in connection with the recent Federal Government shutdown. This has delayed USDA’s completion of fiscal year-end accounting processes. This process will take several days to complete. The Guaranteed Underwriting System (GUS) will become operational on Monday, October 21, 2013. (This is the automated underwriting system for USDA loans)
Other internal USDA systems will not be operational until late next week. For example, USDA will be unable to process lender submitted loan closings until late next week.
Once USDA posts the new turns times, I will share those. I would expect it to be somewhere between 4-5 weeks.
BOTTOM LINE: Start writing those contracts in west Chatham with 60 day closing dates and we will get them done as soon as possible!!!
The Federal Reserve may have to wait until early next year before it sees sufficient strength in the U.S. economy to begin scaling back its bond-buying stimulus, after a destructive Washington budget battle that may take a bite out of growth.
Complicating the Fed's task, a 16-day government shutdown choked off the flow of much of the economic data on which it relies and could undermine the quality of the reports covering October.
Next Fed rate-setting meeting is Oct 29-30. Highly doubtful they start winding down the stimulus program at the end of the month and many question they will do it at the following meeting in December. This is why you have seen 30 yr mortgage rates improve over the last 2-3 weeks. If there is any positive to come out of the shutdown, cheap mortgage rates are not a bad thing.

Program and System Availability Update
Several USDA websites/applications were disabled in connection with the recent Federal Government shutdown. This has delayed USDA’s completion of fiscal year-end accounting processes. This process will take several days to complete. The Guaranteed Underwriting System (GUS) will become operational on Monday, October 21, 2013.
Other internal USDA systems will not be operational until late next week. For example, USDA will be unable to process lender submitted loan closings until late next week.
We are uncertain when fiscal year 2014 funding will become available in the system. Thus, beginning on Oct. 21, 2013, we will begin issuing Conditional Commitments “subject to commitment authority.” Any Conditional Commitments issued “subject to commitment authority” will contain the following language:
“Funds are not presently available for this Conditional Commitment. The Rural Housing Service’s obligation under this Conditional Commitment is contingent upon the availability of an appropriation from which payment for contract purposes can be made. No legal liability on the part of the Rural Housing Service for any payment on this Conditional Commitment may arise until funds are made available to the Rural Housing Service State Office where the application was submitted for this Conditional Commitment and until the Lender receives notice of such availability, to be confirmed in writing by that Rural Housing Service State Office. More specifically, this Conditional Commitment is subject to the Rural Housing Service receiving sufficient funds (in the Program Financial Control System for the Single Family Housing Guaranteed Loan program for the Type of Assistance and State of application submission) to fund this and all prior eligible outstanding applications in their entirety in the time and date order received in the State of application submission. When such funds become available, Rural Development will notify the lender, and the guarantee process will continue subject to all applicable Agency regulations and conditions set forth in this Conditional Commitment. Rural Development will not reserve loan funds for applications in process during this timeframe. Lenders may close the loan as scheduled. The lender will assume all risk of loss for the loan until Rural Development obligates funds and the Loan Note Guarantee is subsequently issued. When the lender requests the Loan Note Guarantee, the lender must certify to the Agency, using the process provided in this commitment, that there have been no adverse changes to the borrower’s financial condition since the date the Conditional Commitment was issued by the Agency. The lender will submit the appropriate guarantee fee at the time they request the Loan Note Guarantee. The loan will be subject to an annual fee of 0.4 percent of the average scheduled unpaid principal balance of the loan. The Agency will not be able to issue the Loan Note Guarantee until these conditions are met and funding is obligated.”
Eligible areas for USDA Rural Housing Programs: The “Continuing Appropriations Act, 2014” (H.R. 2775) was signed into law by the President of the United States. Therefore, barring further Congressional action, current eligible areas for USDA Rural Housing Programs will remain unchanged through January 15, 2014. (H.R. 2775 extends Sec. 731 of H.R. 933 “Consolidated and Further Continuing Appropriations Act, 2013”)
USDA

Program and System Availability Update
Several USDA websites/applications were disabled in connection with the recent Federal Government shutdown. This has delayed USDA’s completion of fiscal year-end accounting processes. This process will take several days to complete. The Guaranteed Underwriting System (GUS) will become operational on Monday, October 21, 2013.
Other internal USDA systems will not be operational until late next week. For example, USDA will be unable to process lender submitted loan closings until late next week.
We are uncertain when fiscal year 2014 funding will become available in the system. Thus, beginning on Oct. 21, 2013, we will begin issuing Conditional Commitments “subject to commitment authority.” Any Conditional Commitments issued “subject to commitment authority” will contain the following language:
“Funds are not presently available for this Conditional Commitment. The Rural Housing Service’s obligation under this Conditional Commitment is contingent upon the availability of an appropriation from which payment for contract purposes can be made. No legal liability on the part of the Rural Housing Service for any payment on this Conditional Commitment may arise until funds are made available to the Rural Housing Service State Office where the application was submitted for this Conditional Commitment and until the Lender receives notice of such availability, to be confirmed in writing by that Rural Housing Service State Office. More specifically, this Conditional Commitment is subject to the Rural Housing Service receiving sufficient funds (in the Program Financial Control System for the Single Family Housing Guaranteed Loan program for the Type of Assistance and State of application submission) to fund this and all prior eligible outstanding applications in their entirety in the time and date order received in the State of application submission. When such funds become available, Rural Development will notify the lender, and the guarantee process will continue subject to all applicable Agency regulations and conditions set forth in this Conditional Commitment. Rural Development will not reserve loan funds for applications in process during this timeframe. Lenders may close the loan as scheduled. The lender will assume all risk of loss for the loan until Rural Development obligates funds and the Loan Note Guarantee is subsequently issued. When the lender requests the Loan Note Guarantee, the lender must certify to the Agency, using the process provided in this commitment, that there have been no adverse changes to the borrower’s financial condition since the date the Conditional Commitment was issued by the Agency. The lender will submit the appropriate guarantee fee at the time they request the Loan Note Guarantee. The loan will be subject to an annual fee of 0.4 percent of the average scheduled unpaid principal balance of the loan. The Agency will not be able to issue the Loan Note Guarantee until these conditions are met and funding is obligated.”
Eligible areas for USDA Rural Housing Programs: The “Continuing Appropriations Act, 2014” (H.R. 2775) was signed into law by the President of the United States. Therefore, barring further Congressional action, current eligible areas for USDA Rural Housing Programs will remain unchanged through January 15, 2014. (H.R. 2775 extends Sec. 731 of H.R. 933 “Consolidated and Further Continuing Appropriations Act, 2013”)
USDA

Thursday, October 17, 2013

http://www.youtube.com/watch?v=c_etADoKjxY
Key highlights:
- Borrower only needs $1,000 investment into the home
- Maximum sales price is $200,000
- Borrower can not have owned any real estate in the last 3 years
- Income limits apply (1-2 person household $59,500 limit, 3+ person household $68,500 limit)
- $5,000 standard assistance and up to $7,500 through PEN and Choice programs
- You can still have a non-occupant co-borrower (family member) be on the loan like a normal FHA. The co-sign income does not count toward the income cap.

Wednesday, October 16, 2013

Daily Real Estate News | Wednesday, October 16, 2013
The clock is ticking for lawmakers to prevent the debt ceiling breach or the government could default on its debts. If the government does default, there likely be one consequence for home buyers that will soon emerge: skyrocketing borrowing costs.
"Anytime there is a default, the borrower is going to get punished in terms of higher interest rates; if the government defaults, that means Treasury rates will also rise, and that also pushes up mortgage rates,” Lawrence Yun, chief economist for the National Association of REALTORS®, told Fox Business Network. “The housing market is highly sensitive to changes in interest rates.”
Home buyers may not be aware that there is a strong link between the government default and mortgage rates.
The average rate on a 30-year fixed-rate mortgages was 4.23 percent last week, Freddie Mac reported.
However, if the government defaults, mortgage rates could rise overnight by a full percentage point or more, says Anthony Hsieh, founder and CEO of LoanDepot, an online mortgage lender. Stu Feldstein, president of SMR Research, a mortgage research firm, predicts mortgage rates could rise by as much as two percentage points within a day or so.
Hsieh believes the rise in rates would prompt more buyers to consider adjustable rate mortgages.
"In the last three years or so, consumers have been spoiled with rates in the high threes to the mid-to-low fours,” Hsieh says. “If we climb into the 5 percent interest rate range, that will create psychological barriers and adjustable rate mortgages will become attractive -- even if they aren't."
Higher mortgage rates could make a big difference to buyers’ with their monthly payments. For example, a 30-year fixed-rate mortgage for a $300,000 loan could have about a $1,472 a month payment at a 4.23 percent mortgage rate. But if mortgage rates rise to 5.5 percent, that same mortgage would have about a $1,703 monthly payment and $83,160 extra in interest over the life of the loan.
Source: “Could Government Default Send Homebuyers Racing to ARMs?” FOX Business (Oct. 15, 2013) and “Mortgage Rates Could Spike if U.S. Defaults,” The Wall Street Journal (Oct. 16, 2013)

A low credit score doesn't necessarily result in an automatic turn down for a mortgage loan.

Mortgage lenders are looking for borrowers who are good risks, even though they may have little or no credit history. Lenders are now looking at additional criteria, some that they may not have considered a few years ago, in order to find new home buyers who are good risks, even though their credit score may not show it.

Those most likely to gain from this new way of looking at financial history include young adults and new immigrants. They are more likely to be approved without being subjected to extremely high interest rates because their scores are not high.

This "non-traditional" data that lenders are now looking at when considering home loan applications includes:

Information in public records, including property records and professional licenses. A license indicates that a person is a better risk because they have a steady income and commitment in the community.

Rental payment is another category that reporting agencies have begun to consider. Late payments could be an indicator of future behavior.

Utility payments and cell phone bill payment history can also be an indicator of whether a person with little or no payment history takes paying their bills seriously.

The takeaway for many is that even though you may have little credit history, or may have a score that falls somewhere between bad and good, you may be able to secure a loan from a mortgage lender. The first thing you need to do is talk to a lender to see what you qualify for and what a loan will cost. A mortgage lender will also be able to tell you how to improve your scores so that you can get a better rate.

Saturday, October 12, 2013

http://www.virtuallyshow.com/un/33123
Situated on a private double cul-de-sac and always a favorite, Regal Builder's Sonata, an alluring home with great room, loft, formal living and dining allowing for tons of actual living space; desirable final touches help polish this home nicely, such as wood, granite, and stainless or black appliances
Bradley Point South is a beautiful, planned community in Savannah, Georgia nestled off Highway 17 South between Savannah’s Southside and the city of Richmond Hill. This fantastic location provides you quick access to Savannah’s malls, I-95, Ogeechee River Public Boat Landing, Savannah International Airport, Gulfstream and the ever-growing Georgia Ports. Bradley Point South is also just minutes away from Historic Savannah and River Street, Tybee Island, Hunter Air Force Base and Fort Stewart.
Bradley Point South‘s beautifully landscaped entry, well-kept lawns, common area and decorative street lamps establish this growing community as a much desired place to live and relax. Take advantage of real estate that is just minutes away from Tybee Island’s sundrenched shoreline, the Historic Area of Savannah, Georgia, several national parks and forts, major colleges/universities, three large hospitals and inland rivers.
Bradley Point South was designed and built by Regal Builders and has homes for sale in Savannah, Georgia starting from the $160′s.

Tuesday, October 8, 2013

With Congress unable to come to an agreement, we've got a situation known as a partial government shutdown. The last time this happened was in 1995 when there was a shutdown that lasted for 21 days.

Many agencies, such as NASA, have furloughed non-essential personnel. Still others are operating at full capacity, including the military and TSA. There are many, including Housing and Urban Development, which are operating with skeleton crews.

Early reports stated that the Federal Housing Administration would stop processing loan applications. This is not the case. The first contingency plan issued by HUD mistakenly stated that FHA would be unable to endorse any single-family loans and that staff would be furloughed.

The announcement sent a panic through the real estate market. After noticing the error, HUD issued a statement saying that its Office of Single Family Housing will continue to endorse new loans even in the event of a lapse in appropriations.

The FHA is funded through multiyear appropriations. There will be some reductions in staff and furloughs, but it will be able to operate. Because the department will be short-staffed, there could be some delays, but the paperwork will be processed. Multi-family operations, however, are funded on a year-by-year basis. During a shutdown, condo projects would be put on hold because the FHA will not be able to underwrite them.

It is unknown at this time how much of a delay we can expect in single-family loan applications or what the long-term impact of a lengthy shutdown will be. In its statement, HUD said that it does not expect the impact on the housing market to be significant, provided the government shutdown is brief.

Monday, October 7, 2013

October generally means Fall weather, daylight hours growing shorter and trick-or-treating. If cars are more your thing, in 1908 on October 1 Henry Ford introduced the first Model T. This is also the month the American Gem Trade Association (AGTA) revised the birthstone list in the first revision since 1912 and added Tanzanite as a December birthstone.
October is named after "octo" which is Latin for "eight" (the first month in the Roman calendar is March). When the Gregorian calendar was adoted in 1582, 10 days in October were skipped to correct for too many leap years over the centuries.
The birth flower is Calendula or Cosmos. The modern birthstone is Opal (confidence, hope and faith) and the traditional birthstone is Tourmaline (safety, endurance and balance).

Tuesday, October 1, 2013

When Federal Reserve Chairman Ben Bernanke announced last week that the Fed would not curtail its bond buying program, the mortgage industry breathed a sigh of relief. Rates dropped slightly after the announcement.

Interest rates had been rising steadily since May, when Bernanke said the Fed was considering trimming the stimulus program, which pumps $85 billion into the American economy every month.

According to Zillow.com, after declining to a low of 3.21% in December 2012, the national average for a 30-year fixed-rate mortgage was recently 4.44%, more than a point higher less than a year later.

What the Fed said

Although pundits and politicians paint these numbers as rosy, the Fed's announcement as a barometer of the nation's economy isn't quite as positive. Here are the highlights:

The Fed will maintain its plan to keep short-term rates at record lows at least until unemployment reaches 6.5 percent.

It doesn't project the unemployment rate to reach that level until the end of 2014 or beyond.

The Fed predicts that inflation will start to rise next year, to somewhere between 1.4% and 2%. Currently it's about 0.8%.

The Fed's announcement assured the mortgage industry that the stimulus would continue for at least a year. But the announcement said, in a nutshell, that the economy is still not improving as quickly as it would like.

Why the Fed's announcement matters

As it stands now, this is a manipulated market, according to a piece on Bankrate.com. (link to http://www.bankrate.com/finance/mortgages/mortgage-analysis.aspx) One analyst was quoted as saying that rates are probably headed to 5 - 6%, once the Fed cuts back on its stimulus efforts and lets the market decide where mortgage rates should be.

What it means for home buyers

The announcement has a definite effect on the environment if you're looking to buy, sell or refinance your home.

Loans are still cheap... for the time being. We're not likely to see the rates go as low as they were late last year, but for the foreseeable future, rates are likely to drop a bit. If the economy continues to improve as anticipated, rates will keep inching up.